Amazon Go is going big(ger) in suburban locations
Amazon.com is opening larger versions of its Amazon Go convenience store concept in the suburbs.
The retail and technology giant is planning a store for Mill Creek, WA, which is located about 20 miles outside of Seattle where Amazon debuted its first Go store in 2018. The new store will be 6,150 square feet, reports The Verge, substantially larger than current Go stores located in more urban areas. The first Go location measured 4,100 square feet.
Amazon sees its new locations — a second is planned in the Los Angeles metropolitan area — as ideally suited to meet the needs of consumers in the suburbs. It does not appear as though fuel or electric charging stations are part of Amazon’s plans for its first store based on a rendering published on USA Today.
“We think local residents and commuters will enjoy the ease of our Just Walk Out Shopping to quickly and conveniently shop from an expanded selection of tasty, ready-to-eat food items and grab-and-go beverages and snacks in their own neighborhood,” said Amazon in a statement.
There are currently around 24 Go stores operating in the U.S., with units in Chicago, Los Angeles, New York and Seattle. The number of Go units are well below Amazon’s original growth projections for the format that would have had it with around 150 by the end of 2020. The advent of the pandemic may have affected Amazon’s plan to scale the concept. Perhaps its move into the suburbs will provide a path to more rapid expansion.
Amazon has also teamed up with Starbucks on a new joint concept store on 59th Street between Park and Lexington Avenues in New York. The store brings together Starbucks’ Pickup concept with Amazon Go.
Katie Young, senior vice president of global growth and development at Starbucks, said last November that the goal behind the concept was “to give our customers the ability to choose which experience is right for them as they go through their day, whether it is utilizing the Starbucks and Amazon apps to purchase food and beverages on the go, or deciding to stay in the lounge for the traditional third place experience Starbucks is known for.”
Amazon and Starbucks are planning to open at least two more locations.
- Amazon brings Just Walk Out convenience to the suburbs – The Verge
- Amazon opening new Amazon Go store ‘closer to home’ for shoppers – USA Today
- Amazon Go goes live – RetailWire
- Is Amazon Go heading for a hard stop? – RetailWire
- Starbucks and Amazon open first joint concept store with more to come – RetailWire
DISCUSSION QUESTIONS: Will Amazon Go convenience stores be successful in suburban locations? What products and services will Amazon need to offer to compete against other c-store operators in those areas?